Analyzing EVgo (NASDAQ:EVGO) & SES AI (NYSE:SES)

EVgo (NASDAQ:EVGO) and SES AI (NYSE:SES) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for EVgo and SES AI, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EVgo	2	2	5	0	2.33
SES AI	1	1	1	0	2.00

EVgo currently has a consensus price target of $5.28, suggesting a potential upside of 205.20%. SES AI has a consensus price target of $2.70, suggesting a potential upside of 380.43%. Given SES AI’s higher probable upside, analysts plainly believe SES AI is more favorable than EVgo.

Earnings & Valuation

This table compares EVgo and SES AI”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EVgo	$384.09 million	1.41	-$41.57 million	($0.35)	-4.94
SES AI	$21.00 million	9.81	-$73.04 million	($0.22)	-2.55

EVgo has higher revenue and earnings than SES AI. EVgo is trading at a lower price-to-earnings ratio than SES AI, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

17.4% of EVgo shares are owned by institutional investors. Comparatively, 29.8% of SES AI shares are owned by institutional investors. 0.1% of EVgo shares are owned by company insiders. Comparatively, 13.8% of SES AI shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares EVgo and SES AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EVgo	-11.15%	N/A	-5.07%
SES AI	-331.72%	-28.65%	-23.21%

Volatility & Risk

EVgo has a beta of 2.82, indicating that its share price is 182% more volatile than the S&P 500. Comparatively, SES AI has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Summary

EVgo beats SES AI on 8 of the 14 factors compared between the two stocks.

About EVgo

EVgo, Inc. owns and operates a direct current fast charging network for electric vehicles (EVs) in the United States. The company offers electricity directly to drivers, who access its publicly available networked chargers; original equipment manufacturer charging and related services; fleet and rideshare public charging services; and charging as a service and fleet dedicated charging services. It also provides ancillary services, such as customization of digital applications, charging data integration, loyalty programs, access to chargers behind parking lot or garage pay gates, microtargeted advertising, and charging reservations; and hardware, design, and construction services for charging sites, as well as ongoing operations, maintenance, and networking and software integration solutions through eXtend. In addition, it offers PlugShare such as data, research, and advertising services and equipment procurement and operational services. EVgo, Inc. was incorporated in 2010 and is headquartered in Los Angeles, California.EVgo, Inc. operates as a subsidiary of EVgo Holdings LLC.

About SES AI

SES AI Corporation engages in the development and production of high-performance Lithium-metal rechargeable batteries for electric vehicles, electric vehicle take-off and landing, and other applications. The company was founded in 2012 and is headquartered in Woburn, Massachusetts.